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a.) Rising gains over time: In 2018 you bought a newly issued 10-yr 2.6% Treasury bond, but now you want to sell it a year
a.) Rising gains over time: In 2018 you bought a newly issued 10-yr 2.6% Treasury bond, but now you want to sell it a year later when yields are 3.5% . What is your capital gain (in dollars)?
b.) Falling gains over time: In 2019 you bought a 10-yr 2.4% Treasury bond that was issued in 2018. One year ago yields were 3.2% but today in 2020 you have to sell the bond with yields of only 1.3% . What is your capital gain (in dollars)?
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